Plymouth city council leaders have agreed to buy back Home Park from Plymouth Argyle, paving the way for the businessman James Brent's takeover to move towards completion.

The cabinet of the local authority, who originally sold the ground to the club for £2.7m in 2006, voted in favour of acquiring the stadium for £1.6m on Tuesday afternoon – with the agreement set to be approved by the full Conservative-controlled council on Tuesday evening.

The purchase was a proviso in Brent's takeover bid. The Akkeron Group chairman, who is negotiating a repayment plan for those still owed wages by Plymouth, said his proposals relied on the council leasing Home Park to the club.

Those terms appear to have been reached, as the agreement between the council and Argyle stipulates that the club will pay £135,000 a year in rent, once the ground has reverted back to council ownership.

That figure will rise should the Pilgrims be promoted to the Championship and would increase more should the team ever reach the Premier League. The lease covers a 30-year period.

Plymouth will be given the opportunity to repurchase Home Park for 12 times the annual rent once every five years under the terms of the deal.